Pelorus Equity Group Closes Offering of $42.2 Million of Senior Unsecured Notes due 2026, Marking a First for the Cannabis Sector

Laguna Hills, California, UNITED STATES


Offering Expected to Be the First in a Series Issued by the Company

Pelorus Also Announces the Company, along with Its Senior Unsecured Notes,
Receive a BBB+ Rating from the Egan-Jones Rating Company

NEWPORT BEACH, Calif., Sept. 29, 2021 (GLOBE NEWSWIRE) -- Pelorus Equity Group (“Pelorus”), the leading provider of value-add bridge commercial real estate loans to entrepreneurs operating cannabis-use properties, announced that its Pelorus Fund, a private mortgage real estate investment trust (the “Company”), has closed a private placement of $42,250,000 aggregate principal amount of its 7% Senior Unsecured Notes due September 30, 2026 (“Notes”).

The Company intends to use the net proceeds from the offering to continue to be the best-in-class real estate lending solution for cannabis owners and operators across their companies’ life cycles. This will include a new stabilized lending program with three- to five-year amortizing loans to quality sponsorship, and be offered to current borrowers upon construction completion, as well as to new borrowers that meet the company’s underwriting criteria.

Piper Sandler & Co. acted as the placement agent for this offering. Dentons served as counsel to the Company and Morrison & Foerster LLP served as counsel to the placement agent in connection with the Notes offering.

“We've been experiencing great success from the transactions we’ve funded in the cannabis space, and are committed to keeping that momentum going,” said Dan Leimel, CEO of Pelorus Equity Group and manager of the Pelorus Fund. “Most banks are reluctant to offer capital to cannabis-related businesses, but our team has been forming strong partnerships with industry players for years now. Not only do we differentiate ourselves by forming trusted relationships, but we also continue to bring first-of-its-kind lending solutions to market that benefit the entire cannabis ecosystem."

In addition, Pelorus announced that the Company, along with its Notes, received a BBB+ rating from Egan-Jones Ratings Company.1

Leimel added, “I want to commend our team for achieving this first-of-its-kind win for the cannabis sector. Our BBB+ ratings reflect a critical achievement in the current growth phase of our Company, as well as our fiscal stewardship, robust portfolio, corporate governance and financial strength.”

This press release is neither an offer to sell nor a solicitation of an offer to buy the Notes or any other securities and shall not constitute an offer to sell or a solicitation of an offer to buy, or a sale of, the Notes or any other securities in any jurisdiction in which such offer, solicitation or sale is unlawful.

About Pelorus Equity Group
Pelorus Equity Group is the leading provider of value-add bridge commercial real estate loans in the multi-billion dollar cannabis industry. Pelorus’ Pelorus Fund, a private mortgage real estate investment trust, offers a range of innovative transactional solutions addressing the diverse needs of real estate investors and portfolio managers, and its flexible acquisition and bridge lending programs are the direct result of our involvement in more than 5,000 transactions of varying size and complexity. Since 1991, our principals have participated in more than $1B of real estate investment transactions using both debt and equity solutions. We draw on our extensive experience to rapidly understand an opportunity, structure a logical solution and execute a timely close. For more information, visit https://www.pelorusequitygroup.com/.  

Investor Contact:
Pelorus Equity Group
ir@pelorusequitygroup.com

Media Contact:
Ellen Mellody
ellen@mattio.com
570-209-2947

1 A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time by the assigning rating organization.